Bankruptcy is a great tool to allow for a new beginning after a disastrous financial situation. Chapter 7 looks like a tempting prospect for many bankruptcy filers especially if they are eligible for chapter 7 and have a good number of dischargeable debts. However, it is not all merry with chapter 7 bankruptcy as well. The first aspect of it is to qualify for the means test. If one does qualify for the means test, that means he/she has irregular income and is very poor, and cannot equal the state median income. The second aspect of this chapter is with respect to assets. This chapter is also known as the liquidation chapter as it leads to the liquidation of assets to recoup some or all the debts. Despite the use of exemptions, some or most assets of the borrower might be subject to liquidation.
Chapter 7 does provide the highest debt discharge; however, the tradeoff could be the assets held by the borrower. Also, since a larger portion of the debt has been discharged it could adversely impact the credit score of the borrower that remains under dark clouds for almost 10 years. Post-bankruptcy availing credit can prove a task. If you reside in Los Angeles & Dallas, TX, you do not have to worry about bankruptcy issues. Just log on to https://www.recoverylawgroup.com/bankruptcy/ or dial 888-297-6203 to know in and out about chapter 7, its alternatives, bankruptcy jargon, and a lot more.